XML 57 R18.htm IDEA: XBRL DOCUMENT v2.4.0.6
Stock Plans
9 Months Ended
Sep. 30, 2012
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock Plans
Stock Plans
The Company utilizes one stock-based compensation plan, the 2009 Incentive Plan (the “2009 Plan”). Under the 2009 Plan, 10.0 million shares of the Company’s common stock, as well as shares of the Company’s common stock previously granted under the Amended and Restated 2001 Incentive Plan and the 2005 Incentive Plan that were cancelled or forfeited without the shares being issued, are authorized for stock option grants, restricted stock awards, performance units and stock grants as part of the Company’s compensation programs (the “Plan”).
The following table summarizes total pre-tax compensation expense recognized related to the Company’s stock options, restricted stock, restricted stock units, performance units and stock grants, net of estimated forfeitures, included in the Company’s condensed consolidated statements of operations for the three and nine months ended September 30, 2012 and October 2, 2011:
 
 
Three Months Ended
 
Nine Months Ended
 
September 30,
2012
 
October 2,
2011
 
September 30,
2012
 
October 2,
2011
 
(In thousands)
Cost of revenue
$
327

 
$
243

 
$
906

 
$
750

Research and development expenses
186

 
138

 
547

 
432

Selling, general and administrative expenses
4,588

 
1,086

 
13,899

 
8,245

Total stock-based compensation expense
$
5,101

 
$
1,467

 
$
15,352

 
$
9,427


The total income tax benefit recognized in the condensed consolidated statements of operations for stock-based compensation was $1.6 million and $5.0 million for the three and nine months ended September 30, 2012, respectively. The total income tax benefit recognized in the condensed consolidated statements of operations for stock-based compensation was $0.3 million and $3.0 million for the three and nine months ended October 2, 2011, respectively. Stock-based compensation costs capitalized as part of inventory were $0.3 million and $0.4 million as of September 30, 2012 and October 2, 2011, respectively. The excess tax benefit recognized from stock awards, classified as a financing cash activity, was $1.8 million and $9.3 million for the nine months ended September 30, 2012 and October 2, 2011, respectively.
Stock Options: The fair value of each option grant is estimated using the Black-Scholes option pricing model. The Company’s weighted-average assumptions used in the Black-Scholes option pricing model were as follows:
 
 
Three and Nine Months Ended
 
September 30,
2012
 
October 2,
2011
Risk-free interest rate
0.6
%
 
1.9
%
Expected dividend yield
1.2
%
 
1.1
%
Expected lives
4 years

 
4 years

Expected stock volatility
38.7
%
 
38.1
%

The following table summarizes stock option activity for the nine months ended September 30, 2012:
 
 
Number
of
Shares
 
Weighted-
Average
Price
 
Weighted-Average
Remaining
Contractual Term
 
Total
Intrinsic
Value
 
(In thousands)
 
 
 
(In years)
 
(In millions)
Outstanding at January 1, 2012
5,346

 
$
20.57

 
 
 
 
Granted
756

 
26.28

 
 
 
 
Exercised
(1,171
)
 
19.59

 
 
 
 
Canceled
(210
)
 
22.34

 
 
 
 
Forfeited
(14
)
 
22.02

 
 
 
 
Outstanding at September 30, 2012
4,707

 
$
21.65

 
3.9

 
$
25.8

Exercisable at September 30, 2012
3,110

 
$
20.22

 
2.9

 
$
21.4

Vested and expected to vest in the future
4,518

 
$
21.55

 
3.8

 
$
25.2


The weighted-average per-share grant-date fair value of options granted for the three and nine months ended September 30, 2012 was $7.71 and $7.36, respectively. The weighted-average per-share grant-date fair value of options granted for the three and nine months ended October 2, 2011 was $7.99 and $7.86, respectively. The total intrinsic value of options exercised for the three and nine months ended September 30, 2012 was $3.9 million and $9.1 million, respectively. The total intrinsic value of options exercised for the three and nine months ended October 2, 2011 was $0.05 million and $6.9 million, respectively. Cash received from option exercises for the nine months ended September 30, 2012 and October 2, 2011 was $22.9 million and $23.7 million, respectively.
The total compensation expense recognized related to the Company’s outstanding options was $1.2 million and $3.7 million for the three and nine months ended September 30, 2012, respectively, and $1.1 million and $3.3 million for the three and nine months ended October 2, 2011, respectively.
There was $7.8 million of total unrecognized compensation cost, net of estimated forfeitures, related to nonvested stock options granted as of September 30, 2012. This cost is expected to be recognized over a weighted-average period of 2.0 fiscal years and will be adjusted for any future changes in estimated forfeitures.
Restricted Stock Awards: The following table summarizes restricted stock award activity for the nine months ended September 30, 2012:
 
 
Number of
Shares
 
Weighted-
Average
Grant-
Date Fair
Value
 
(In thousands)
 
 
Nonvested at January 1, 2012
672

 
$
23.62

Granted
357

 
25.85

Vested
(182
)
 
23.22

Forfeited
(52
)
 
23.72

Nonvested at September 30, 2012
795

 
$
24.71


The weighted-average per-share grant-date fair value of restricted stock awards granted during the three and nine months ended September 30, 2012 was $27.06 and $25.85, respectively. The weighted-average per-share grant-date fair value of restricted stock awards granted during the three and nine months ended October 2, 2011 was $25.19 and $26.68, respectively. The fair value of restricted stock awards vested for the three and nine months ended September 30, 2012 was $0.1 million and $4.2 million, respectively. The fair value of restricted stock awards vested for the three and nine months ended October 2, 2011 was $0.02 million and $5.3 million, respectively. The total compensation expense recognized related to the Company’s outstanding restricted stock awards was $1.9 million and $6.1 million for the three and nine months ended September 30, 2012, respectively, and $1.6 million and $4.6 million for the three and nine months ended October 2, 2011, respectively.
As of September 30, 2012, there was $11.5 million of total unrecognized compensation cost, net of forfeitures, related to nonvested restricted stock awards. That cost is expected to be recognized over a weighted-average period of 1.5 fiscal years.
Performance Units: The Company granted 122,675 and 89,828 performance units during the nine months ended September 30, 2012 and October 2, 2011, respectively, as part of the Company’s executive incentive program. The weighted-average per-share grant-date fair value of performance units granted during the nine months ended September 30, 2012 and October 2, 2011 was $26.18 and $26.71, respectively. The total compensation expense recognized related to these performance units was $1.9 million and $4.9 million for the three and nine months ended September 30, 2012, respectively, and $1.2 million and $0.8 million for the three and nine months ended October 2, 2011, respectively. As of September 30, 2012, there were 322,516 performance units outstanding and subject to forfeiture, with a corresponding liability of $8.2 million recorded in accrued expenses.
Stock Awards: The Company generally grants stock awards only to non-employee members of the Board. The Company granted 4,535 and 3,544 shares to each non-employee member of the Board during the nine months ended September 30, 2012 and October 2, 2011, respectively. The weighted-average per-share grant-date fair value of stock awards granted during the nine months ended September 30, 2012 and October 2, 2011 was $27.87 and $28.22, respectively. No compensation expense was recognized related to these stock awards in each of the three months ended September 30, 2012 and October 2, 2011, respectively. The total compensation expense recognized related to these stock awards was $0.7 million and $0.8 million for the nine months ended September 30, 2012 and October 2, 2011, respectively.
Employee Stock Purchase Plan: During the nine months ended September 30, 2012, the Company issued 53,961 shares of common stock under the Company's Employee Stock Purchase Plan at a weighted-average price of $24.51 per share. At September 30, 2012, an aggregate of 1.2 million shares of the Company’s common stock remained available for sale to employees out of the 5.0 million shares authorized by shareholders for issuance under this plan.